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Questions and StoriesCategory: QuestionsDo You Know How Much You Spend and Save Each Year?
Gareth White asked 2 months ago

Do You Know How Much You Spend and Save Each Year?

Following on from my previous question of how many people have an emergency fund I thought this was another interesting question to ask. Do you know how much you send and save each year?
It is very easy to go through life not thinking to much about every day expenses because you don’t have the time or just cant be bothered. But as we know time waits for no man and all of a sudden you might be getting towards retirement and suddenly realize you haven’t saved enough to retire at the age you want or to live in the way you want.

The old technique for calculating what you do with money was known as the 50/30/20 rule, it prescribed that you should reserve 50% of your income for essentials like rent and food, 30% for discretionary spending, and at least 20% for savings.

Do you follow a rule like this or any rule at all?

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29 Answers
Leno Jean Pierre answered 2 months ago

First, i would like to thank you for this post, honestly i never know this rule, the only things i know is that i should save 30% of my income. Now i know the full rule i and can apply it properly in life to prepare my retirement.

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Ahmad Khasan answered 2 months ago

Thank you Gareth.
 
I know the rule but has not get to apply it consistently. Some time my spending got higher and some other time my saving that got higher. But, if I average it, I get almost similar spending and saving each month.
 
Cyrrently, I work toward applying this rule consistently.

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Edward Duffy answered 2 months ago

I have an extremely good idea as to how much we spend and I know how much I save. This is an occupational hazard.

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David Matlala answered 2 months ago

I have an idea of how much I earn; how much I spend and how I save. Although I don’t get to calculate the exact amounts, I’m not happy with the way I fail to stick to some of my plans.
I know about the 50/30/20 rule but I’ve never used it.
 

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Kenneth Ogbonnaya answered 2 months ago

Thank you for reminding me the process of saving,honestly, I know about the rules of saving but I have not been following it judiciously. I will reorganize my self to make it with this rule of saving .

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Jackson Mugarura answered 2 months ago

I didn’t have any rule to follow but it’s good to know about this rule. Currently I for one, I’m not saving any money but I hope to start in the near future I hope to apply the same rule. The reason I’m not saving now is that I have a small income as a result of job loss.

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Gareth White answered 2 months ago

I think the key here is to at least think about the rule. The apportionment will vary upon your circumstances but it is always useful to just stop and think for a minute and make sure you are spending and saving wisely

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Kenneth Ogbonnaya answered 2 months ago

I don’t save any money I save.but,right now my thoughts have changed about saving.

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Leno Jean Pierre answered 2 months ago

I have been saving 30% of my income each month but not all the time. There are moment, i don’t earn enough money,so i can save anything.Now i have discovered this rule, i going to apply it when it will be possible for me.Saving money is very important and hopeful for unexpected moments.

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Kenneth Ogbonnaya answered 2 months ago

I can’t extimate my spending yearly ,neither do I save money at all, All I do is spending in my family and also putting back all my profit back to business. All thanks to you Mr Vahid who had reminded me of what I learnt in Rich Dad and Poor Dad a book written by ROBERT KYOSAKI. I will apply the formula now.

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Leno Jean Pierre answered 2 months ago

Knowing this Formula is going to change the way i spend my money. I will strictly apply for one year and see what i can save and how much I have spend during the entire year. It good sometimes to know some details.

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Kenneth Ogbonnaya answered 2 months ago

Thank you Mr Vahid, I have not been saving neither do I know how much I spent each year. I will begin to save now using the 50 20 30 method.

Ramachandran Suppan replied 2 months ago

I am always using my extra money to pay my house mortgage so i can settle the house loan faster. So the reduction in loan is my saving.

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Leno Jean Pierre answered 2 months ago

If I were not in this club, i will not know this formula. I have been learning lots of useful things in this club. What a great and amazing system. We are earning in two ways, education and money.

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Gareth White answered 2 months ago

I do still find I spend too much and dont save enough!!

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Leno Jean Pierre answered 2 months ago

By the beginning of 2021,if God allow me to live, i will strictly apply this rule to know exactly what i can spend, save in a year. Great Formula.

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Eli Davis Keinamura answered 2 months ago

Saving is a good idea,most individuals prefer savings.The only unfortunate part of it ,is how do you save when you have a salary of 200 Dollars a mouth with four children to look after.Thats why some of us have joined luckscout club in order to save for our future.

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Kenneth Ogbonnaya answered 1 month ago

I don’t know how much I save neither do I know how much I spend each year. But, I have learn saving pattern now,  From the day I answered this question the first time, I begin to save.

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Gareth White answered 1 month ago

As long as you start saving something you are going in the right direction and will build up a nice little pot of cash that can then be used for new opportunities that come along

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Gareth White answered 1 month ago

I hear what you are saying Eli, so a plan for the person in this situation is trying to find a way of generating more income like you have said via Luckscout. When you have enough spare money each month then you can start saving. Keep finding ways to increase your income.

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Leno Jean Pierre answered 1 month ago

You’re really right MR Eli ,many people know what it is important to save money for the Future but if you are not good paid, and you have big family and children to look after, you can’t do so.
We have hope on luckscoutclub to help us get out of the poverty.

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Eli Davis Keinamura answered 1 month ago

I have always wanted to save money,but my most challenging task is to save on the amount I earn.Its very little to support my daily expenses.I hope in future am going to save since, am starting different business es to increase on my income.

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Kenneth Ogbonnaya answered 1 month ago

Saving is very important when it comes to someone’s financial freedom.

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adharad answered 3 weeks ago

I never write down how much money I spend and earn each year. But, every year I try to save money and my savings can meet my needs for one year.

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Leno Jean Pierre answered 3 weeks ago

I have never focused on it and know how much money i spend a year, i will try it but it going to be difficult to manage such calculation.

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Leno Jean Pierre answered 3 weeks ago

In 2021 I’m going to invest my time study and follow this rule. From January 1st 2021 to December 31st i will write down incomes and expenditure each month and make the calculation at the end.

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Kenneth Ogbonnaya answered 3 weeks ago

I don’t know how much I earn or save in a year . But, come 2021, I will adopt the habit of saving .

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Leno Jean Pierre answered 3 weeks ago

No, but I’m planning to know how much money i will spend in 2021,i will follow this rule strictly until December 2021,then  i ‘m going to make the calculation.

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Kenneth Ogbonnaya answered 3 weeks ago

I don’t really know how I spent and save yearly.

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Kenneth Ogbonnaya answered 2 weeks ago

Not at all

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